The see-saw market action continued this week. Here’s a quick recap…
The broader market staged a stunning rally on Friday in the wake of the better-than-expected June retail sales report, and the market continued to bask in the glow of the strong retail sales report Monday morning. The fact is the numbers showed that consumers are still spending across many categories. So, some analysts think that the U.S. will be able to skirt a serious recession.
While the broader market surged more than 1% in early trading, that glow faded in afternoon trading as investors panicked over a Bloomberg report that Apple Inc. (AAPL) is planning to tap the brakes on hiring and spending to get ahead of a potential recession. Apple is not the first big tech company to slow down on hiring – an Alphabet Inc. (GOOG) employee memo last week revealed that Alphabet will be “slowing down the pace of hiring for the rest of the year.”
Meta Platforms, Inc. (META), Intel Inc. (INTC), Tesla Inc. (TSLA), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), Twitter Inc. (TWTR) and Netflix, Inc. (NFLX) are also taking a more cautious hiring approach and/or instituted a hiring freeze.
However, stocks came roaring back today – the S&P 500 and Dow climbed more than 2% and the NASDAQ jumped more than 3% in the afternoon.
The reality is the market is still oscillating. In other words, what is up one day will be down the next. Now, when we’re in this kind of market environment, it’s important to be invested in fundamentally superior stocks. These are the stocks that will hold up better (relatively speaking) during market drawdowns and then rebound quickly when the market bounces back.
And now that we’re moving deeper into the second-quarter earnings season, it’s going to be every stock for itself. I anticipate that the stocks that post strong earnings, sales and provide positive guidance will emerge as the winners as the market grows more narrow.
To help ensure that you’re not investing in the wrong fundamentally weak stocks, I revised my Portfolio Grader recommendations for 74 blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
I’ve listed the first 10 stocks that were downgraded from a Hold (C-rating) to a Sell (D-rating), but you can also click here for the full list of stocks – which will also give you a peek at their Quantitative Grade and Fundamental Grade.
|Ticker||Company Name||Total Grade|
|ALLY||Ally Financial Inc||D|
|APD||Air Products and Chemicals, Inc.||D|
|ARE||Alexandria Real Estate Equities, Inc.||D|
|ATVI||Activision Blizzard, Inc.||D|
|BABA||Alibaba Group Holding Ltd. Sponsored ADR||D|
|BAX||Baxter International Inc.||D|
|BBD||Banco Bradesco S.A. Sponsored ADR Pdf||D|
|BBDO||Banco Bradesco S.A. Sponsored ADR||D|
|BSBR||Banco Santander (Brasil) S.A. Sponsored ADR||D|
|CM||Canadian Imperial Bank of Commerce||D|
Now, if you’re looking for the best small-cap stocks, you’ll want to take a look at my Breakthrough Stocks Buy List stocks for my newest recommendations and Top Stocks. Since last Friday, my Breakthrough Stocks Buy List is up nearly 6% (as of this writing) – more than doubling the S&P 500’s and Dow’s performance over the same period. And the best part? This strength is just the beginning. I fully expect earnings to dropkick and drive my Breakthrough Stocks even higher in the coming weeks.
Click here to become a member of Breakthrough Stocks today and receive my latest recommendations, Top Stocks list and much more!
Louis Navellier, Market 360
P.S. In this video presentation, Whitney Tilson and I are covering what promises to be a historic product demonstration. We predict it will cause a “repeat” of March 23, 2020, and send one particular type of stock up 1,000% or more. And on Thursday, July 21, at 4:30 p.m. Eastern, I’ll be releasing an exciting new recommendation that’s a stellar example of that type of stock. Click here to watch our presentation – and to make sure you receive that pick Thursday afternoon.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: